DESI Power’s EmPower Partnership Project

Manoj Mahata     mmahata@devalt.org

 
Empower Partnership Project (EmPP), an initiative by DESI Power (please visit www.desipower.com) or Decentralised Energy Systems (India) Pvt. Ltd. is a programme that helps in the multi-faceted development of rural India.

      DESI Power has made this development possible through the power generated from the non-conventional energy sources. The EmPP programme has commenced by establishing biomass gasifier-based power plants in non-electrified rural pockets. These power plants not only provide the electricity for domestic use, but they also ensure quality power supply for irrigation, drinking water, micro-industries and other energy dependent services. At the same time, the livelihood opportunities for the poor/ marginal/ landless villagers also increase due to such renewable energy options. Every project creates around 20-30 new sustainable job opportunities in the integrated activities of power generation and micro-enterprise development. Women being an integral part of the entire development programme, this sustainable initiative leads to women empowerment too.

 

DESI Power aims at sustainable development of rural India   The Biomas Sasifier Power Plant

      This venture will help in creating a number of livelihoods at the local level and hence assure the progress of the local populace, through rural micro industries like charring and briquetting, mini workshops, flourmills, MCR units, battery charging stations and other energy services like irrigation facilities, without harming the environment.

From the environmental point of view, power generation through renewable energy sources provides an excellent alternative to reduce GHG emissions and minimise the risk of global climate change.

      Since DESI Power is an ideal vehicle for large-scale commercialisation of renewable energy and simultaneous promotion of sustainable development of rural areas, the Independent Rural Power Producer (IRPP ) solution presents an ideal win-win situation.

      The IRPP will use energy resources that are renewable in nature, locally available, and operate on a commercially viable basis. It will thus promote local value addition and capacity building at the community level, which will make these rural areas much more self-reliant and prosperous.

      After successful implementation of the EmPP Model at three different locations: namely - Orchha (M.P), Baharbari (Araria, North Bihar) and Varlakunda (Karnataka), DESI Power has initiated a 100 village EmPP programme at Araria district of Bihar. Another 20 village EmPP programme formulation for the  Bundelkhand region is taking its final shape.

      DESI Power is now inviting local partners (where the local partner can be an NGO, Gram Panchayat, cooperative body or any other suitable entity), to build, own, operate and (later) transfer IRPPs in Indian villages.

      To establish a proper network with potential partners, DESI Power has set up a procedure as shown in the Box at the bottom of the page.

      Thus, a prepared Project Feasibility and Packaging Report (PFPR) is required to raise funds for the project (i.e. bank loan, for MNES subsidy, for CO2 selling etc.). This PFPR is prepared by DESI Power.

      The local partner owns, operates and manages the proposed EmPP. DESI Power packages and helps in implementation of the project and approaches the funding agencies, together with the local partner.

      DESI Power also provides the Cluster Centre Management, which includes performance audit, continuing support service, technical support and refresher courses.

Road Blocks and the Way Forward

1. Village Selection

      Selecting a village is a crucial work for any implementing agency. Parameters like the availability of resources (especially groundwater and surface water), favourable dynamic social structure and local politics are some of the basic requirements. If we select a small village/hamlet, then as per MNES’s Remote Village Electrification (REV) guidelines programme, the total fund allocated will not be adequate for the suitable capacity power plant. On the other hand, transmission and distribution costs are bound to be high for any scattered village.

2. Status of Electrification

      We must be sure that the village selected is un-electrified as per the definition of “Electricity Act 2003”. In addition, this village should remain outside the priority list of SEB’s grid extension plan.

3. Getting the NOC

Obtaining a No Objection Certificate   (or NOC) from SEB is necessary for submitting the PFPR to any funding organisation. However, practical issues are difficult to co-relate, e.g. SEB wants assurance (vide a letter) from the funding organisation, whereas the funding organisation in turn wants the same from SEB. Bringing people from SEB, funding organisations and banks together with the beneficiaries at a common platform, is a mammoth work.

4. Support from Govt. Department

      Energy plantation / fuel forestry must supplement every biomass gasifier-based EmPP programme. It requires additional funds and community / forest land. Getting this extra amount is certainly an uphill task unless the respective authority or Government Department is willing to share some of this burden.

5. Community contribution

      In addition to the 90 percent funding from funding organisations, beneficiaries are supposed to contribute the remaining ten percent of the project cost. It is hardly possible to raise the remaining ten percent without the help of MP/MLA fund, DM’s fund or Gram Panchayat fund.

6. Micro-Enterprise

      While selecting any micro-enterprise, we must explore the potential market for all such enterprises to make them an economically viable and  technologically feasible proposition.

7. Hidden costs

            From conceptualization to the transfer of a stabilized power plant to the community, the whole process may take one to two years. Every activity such as making a pre-feasibility report, establishing a rapport with various Govt. departments, formation of a Village Electrification Committee (VEC) and its training and capacity building  takes time and money. It is very difficult to manage everything with the allocated funds on a project-to-project basis. A multi-village programme level approach with an assured support from Government authorities and funding organisations is probably the only way to make this venture sustainable.q

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